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jayda adams
on Nov 18, 2024

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The investor carrying an investment by the equity method records cash dividends received as an increase in the carrying amount of the investment.

Equity Method

An accounting technique used to record investments in associate companies where the investor has significant influence but not full control, recognizing income in proportion to their share of the earnings.

Carrying Amount

The value at which an asset is recognized on the balance sheet, considering factors like initial cost, depreciation, and impairment losses.

  • Understand how dividends received from investments impact the carrying amount of the investment.
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TRENTON TILLERNov 23, 2024
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